PRODCTION POSSIBILITY CURVE CHAPTER 4 Flashcards
1
Q
What does a PPC display.
A
A ppc displays the array of production possibilitys that can be produced with the resources avalible it compares 2 product types (substitutes or indirect substitutes). It also shows the production capacity,produced right now and also can be produced in the future.
It also shows the opportunity cost of each possibility.
2
Q
What has to change for a shift in ppc to occor?
A
A change in quality or quantity of fops.
3
Q
What does a shift rightward mean?
A
Increase in production capacity or an increase in quality or quantity of fops.
4
Q
What does a shift leftward mean?
A
Deacrease in production capacity or reduction in quality or quantity of fops.
